senate Bill S439

2011-2012 Legislative Session

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 05, 2012 defeated in corporations, authorities and commissions
Feb 21, 2012 notice of committee consideration - requested
Jan 04, 2012 referred to corporations, authorities and commissions
Jan 05, 2011 referred to corporations, authorities and commissions

Votes

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Mar 5, 2012 - Corporations, Authorities and Commissions committee Vote

S439
2
4
committee
2
Aye
4
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: Mar 5, 2012

aye (2)

S439 - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-u, amd §16-m, UDC Act
Versions Introduced in 2009-2010 Legislative Session:
S7729A

S439 - Bill Texts

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Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation; provides grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.

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BILL NUMBER:S439

TITLE OF BILL:

An act
to amend chapter 174 of the laws of 1968 constituting the New York state
urban development corporation act, in relation to kitchen
incubator/shared-use kitchen facilities

PURPOSE:

Provide start-up and expansion funding for not-for-profit sponsors of
small-scale food processing facilities.

SUMMARY OF PROVISIONS:

Would add a new section 16-t to chapter 174 of the laws of 1968
constituting the NYS Urban Development Corporation Act creating a
kitchen incubator/shared-use kitchen facility grant program.

Section
1. Subdivision (1) defines these facilities as government licensed
food processing or preparation facilities, sponsored by not-for-profits
or government agencies, and used by small emerging food
businesses who are either full-time or temporary tenants. The
sponsors must provide low-cost space and financing and business
support services. Other services, such as technical, production,
distribution and sales assistance to tenants, may be provided. The
corporation is authorized to award competitive grants to sponsors for
construction, rehabilitation, equipment, training, technical
assistance and other approved purposes.

Subdivision (2) requires
grant applicants to provide management plans for financial
self-sufficiency, community needs assessment, and planning for
providing assistance described in paragraph (1).

Subdivision (3)
allows for one grant per applicant per year, up to $250,000.
Preference is given to applicants:
from distressed areas or economic development zones; providing a local
match; meeting local needs; providing services not offered by local
governments or business; providing services and assistance in addition
to that required in subdivision one; and, with a plan, developed in
cooperation with the Department of Agriculture and Markets, to
assist facility businesses with purchasing NYS farm products and
promoting the facility to regional farmers.
Section 2. amends
paragraph b of subdivision 1 of section 16-m of section 1 of chapter
174 of the laws of 1968 as added by chapter 84 of the laws of 2002 to
include kitchen incubator/shared-use kitchen programs in the Economic
Development Fund.

JUSTIFICATION:


Small businesses provide a significant portion of the jobs, and
opportunities for financial success, in our State. This is especially
true for distressed communities, rural areas, immigrant populations
and women and minorities. In the food sector of our economy many
successful enterprises have been started at home or on the farm by
individuals who may not have an advanced degree or investment
income but have created a great recipe or family dish that could be
developed into a profitable product. The growth of these types of
businesses is often dependent on affordable, available processing
space, financing, management assistance and other services that can
nurture an emerging firm. A facility assisting the growth of new or
expanding businesses is called an incubator. Kitchen incubators are
similar to other types of business incubators; they provide
inexpensive space, shared services, access to financing and other
support to multiple small enterprises such as specialty food
producers, farmers, street vendors, restaurants, caterers, and food
service training programs. These food business incubators can be
built from scratch but most often are located in buildings, such as
abandoned or under used food service facilities, that already
have available food preparation space and equipment. The goals of
these "kitchen" facilities are to foster entrepreneurship, job
development, and community revitalization. An additional goal is
improving local farm sustainability by providing an outlet for
farmers to sell, or add value themselves, to their farm products.
This bill would provide seed funding for communities to establish
facilities that provide opportunities for all segments of our
society to become food business owners. New business owners create
jobs for the surrounding area. The facility could also participate in
workforce training and development. The proposed funding for these
facilities would be targeted and carefully allocated. Program
sponsors would be required to develop a facility that is based on a
sound plan that analyzes community needs, and ensures fiscal
responsibility. The State's economic development efforts currently
focus financial assistance to large companies, however, major food
processors have virtually disappeared from New York.
Creating a program for small-scale food businesses will help reverse
this trend, benefiting local economies, workers and farmers.

LEGISLATIVE HISTORY:

1999/00: A.7312
2001/02: A.747
2003/04: A.675-A/S.3270
2005/06: A.3717-A
2007/08: A.3680/S.7570
2009: A.4166/S.3594
2010: A.9808-A/S.7729-A

FISCAL IMPLICATIONS:

Subject to state appropriations.

REGULATION IMPACT:

State regulations establishing grant application requirements may be
needed.


EFFECTIVE DATE:

Immediately, with provisions.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   439

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  chapter 174 of the laws of 1968 constituting the New
  York state urban development corporation act, in relation  to  kitchen
  incubator/shared-use kitchen facilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1 of chapter 174 of the laws of 1968,  constituting
the  New  York  state  urban  development corporation act, is amended by
adding a new section 16-u to read as follows:
  S 16-U. SMALL BUSINESS KITCHEN INCUBATOR/SHARED-USE  KITCHEN  PROGRAM.
1.  THERE  IS HEREBY ESTABLISHED WITHIN THE CORPORATION A SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM. THE CORPORATION IS AUTHOR-
IZED WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC DEVEL-
OPMENT FUND ESTABLISHED PURSUANT TO SECTION 16-I OF THIS ACT,  TO  AWARD
GRANTS,  ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPOSALS, TO
LOCAL  DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL   INSTI-
TUTIONS,  AND  OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR THE COSTS INVOLVED
IN STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN  FACILI-
TY.   THE CORPORATION IS FURTHER AUTHORIZED TO CONTRACT WITH THE COMMIS-
SIONER OF AGRICULTURE AND MARKETS, AND SUCH COMMISSIONER  IS  AUTHORIZED
TO  CONTRACT  WITH  THE  CORPORATION,  TO PREPARE AND ISSUE REQUESTS FOR
PROPOSALS, ACCEPT GRANT APPLICATIONS, RECOMMEND THOSE APPLICATIONS  THAT
BEST  MEET ESTABLISHED CRITERIA, TO ESTABLISH CRITERIA AND TO ADMINISTER
GRANTS AWARDED UNDER THIS SUBDIVISION.  SUCH GRANTS MAY BE USED FOR  THE
CONSTRUCTION  OR REHABILITATION OF SUCH FACILITY, PURCHASE OF EQUIPMENT,
TRAINING, TECHNICAL ASSISTANCE, AND OTHER  PURPOSES  NECESSARY  FOR  THE
SUCCESSFUL  DEVELOPMENT  OR  EXPANSION OF A KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY. KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES  SHALL
BE  FOOD  PROCESSING  OR  PREPARATION  FACILITIES  THAT  ARE OPERATED BY
NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY
SMALL AND EMERGING BUSINESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00734-01-1

S. 439                              2

AND BUSINESSES THAT RENT SPACE ON A TEMPORARY BASIS.  THEY MUST  PROVIDE
OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE, BELOW CURRENT
MARKET  VALUE  IN  THE  AREA  THE FACILITY SERVES; AND SUPPORT SERVICES,
INCLUDING  BUT NOT LIMITED TO, BUSINESS PLANNING, MANAGEMENT ASSISTANCE,
FINANCIAL PACKAGING, LINKAGES TO  FINANCING  SOURCES,  AND  COORDINATION
WITH OTHER SOURCES OF TRAINING AND ASSISTANCE.  THEY MAY PROVIDE OR MAKE
AVAILABLE  FOR  FACILITY BUSINESSES, SERVICES SUCH AS FOOD PRODUCTION OR
PROCESSING TECHNICAL ASSISTANCE,  MARKETING,  DISTRIBUTION,  PURCHASING,
STORAGE, PACKING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES.
  2.  PROJECT  PLANS.    APPLICANTS FOR GRANTS MUST PROVIDE A MANAGEMENT
PLAN AND A BUSINESS PLAN FOR OPERATING THE KITCHEN  INCUBATOR/SHARED-USE
KITCHEN  FACILITY  WHICH  DEMONSTRATES TO THE SATISFACTION OF THE CORPO-
RATION: (I) LOCAL BUSINESS INTEREST  IN  A  NEW  OR  EXPANDED  FACILITY,
INCLUDING THE FOOD PROCESSING NEEDS OF EXISTING AND POTENTIAL FOOD BUSI-
NESSES;  (II) THE APPLICANT'S ABILITY TO DELIVER SERVICES AND ASSISTANCE
AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, INCLUDING A DESCRIPTION
OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIVERED; (III) WHETHER THE
SERVICES PROVIDED TO  FACILITY  TENANTS  WILL  BE  COVERED  BY  FEES  OR
INCLUDED  IN  THE  RENT, AND HOW RENTALS AND/OR FEES WILL BE STRUCTURED;
(IV) A POLICY FOR TENANTS' ENTRANCE TO AND EXIT, OR GRADUATION, FROM THE
FACILITY; AND, (V) THAT THE FACILITY CAN BE SELF-SUSTAINING AND WILL NOT
REQUIRE LONG-TERM STATE OPERATING SUBSIDIES.
  3. GRANT CRITERIA. GRANTS AND LOANS MADE BY THE  CORPORATION  PURSUANT
TO THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:
  A.  NO  SUCH GRANT SHALL EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS PER
YEAR; AND
  B. PREFERENCE SHALL BE GIVEN TO  APPLICANTS  WHICH:  (I)  MEET  HIGHLY
DISTRESSED  AREA  CRITERIA  OR  WHICH  SUPPORT  EMPIRE ZONES ESTABLISHED
PURSUANT TO ARTICLE 18-B OF THE GENERAL MUNICIPAL LAW; PROVIDE  A  LOCAL
MATCH;  MEET  A  SUBSTANTIAL  LOCAL  OR  REGIONAL NEED; COMPLEMENT LOCAL
PROGRAMS OR PROVIDE SERVICES NOT READILY AVAILABLE FROM UNITS  OF  LOCAL
GOVERNMENT  OR THE PRIVATE SECTOR; PLAN TO PROVIDE OR MAKE AVAILABLE FOR
FACILITY BUSINESSES,  SERVICES,  INCLUDING  BUT  NOT  LIMITED  TO,  FOOD
PRODUCTION  OR PROCESSING TECHNICAL ASSISTANCE, MARKETING, DISTRIBUTION,
PURCHASING, STORAGE, PACKAGING, INSURANCE, ON-SITE  RETAILING  OR  OTHER
SERVICES;  AND  (II)  HAVE DEVELOPED A PLAN TO ASSIST BUSINESSES PARTIC-
IPATING IN THE APPLICANT'S KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITY
WITH PURCHASING NEW YORK STATE AGRICULTURAL PRODUCTS, AND PROMOTING  THE
FACILITY TO REGIONAL FARMERS.
  S  2.  Paragraph  (b) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation act, as added by section 1 of part N of chapter
84 of the laws of 2002, is amended to read as follows:
  (b) Loans, loan guarantees,  and  grants  including  interest  subsidy
grants  may  be provided to municipalities, industrial development agen-
cies, not-for-profit corporations or local development corporations  for
the  purpose  of  developing  federal  facility  sites, urban industrial
sites, industrial parks and incubator buildings INCLUDING SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES; or to undertake prelim-
inary planning relating thereto;
  S 3. This act shall take effect immediately, provided,  however,  that
the  amendments to section 16-m of the urban development corporation act
made by section two of this act shall not affect the expiration of  such
section and shall expire and be deemed repealed therewith.

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